From job postings to the initial screening of applications: Artificial intelligence is taking on more and more tasks in human resources. Anyone who uses it should be familiar with the legal guidelines—from the EU AI Regulation to data protection.

AI Is Transforming Human Resources

Many human resources departments are already relying on AI-powered applications. These tools assist, for example, with drafting job postings, pre-screening applications, scheduling interviews, and preparing employment references. AI is also increasingly being used in talent development and the analysis of training needs.

The biggest advantage is the time saved. Routine tasks can be automated, allowing HR managers to focus more on strategic and interpersonal tasks. Nevertheless, AI should not be seen as a substitute for human decision-making, but rather as a supportive tool.

What are the legal risks?

As helpful as AI can be in human resources, it also carries risks. AI systems make decisions based on the data they were trained on. If this data is flawed or contains unconscious biases, it can lead to discriminatory outcomes. For example, there is a risk that applicants will be disadvantaged based on their age, gender, or background, even though this is legally prohibited.

In addition, AI-generated results are not always accurate or transparent. HR managers should therefore always critically review AI suggestions and avoid making important decisions based solely on automated systems. Human oversight remains indispensable, especially when it comes to personnel decisions.

The EU AI Regulation Establishes New Obligations

With the EU AI Regulation (AI Act), the European Union has established a uniform legal framework for the use of artificial intelligence for the first time. The regulation aims to promote innovation while protecting the fundamental rights and safety of affected individuals. The regulations will be implemented in phases. As early as February 2025, companies will be required to ensure an adequate level of AI expertise. Additional provisions will take effect in phases starting in August 2026.

The AI Act plays a particularly important role in human resources. AI systems that contribute to decisions regarding hiring, promotions, terminations, or other significant employment-related decisions—or that significantly influence such decisions—may be classified as high-risk AI. Such systems are subject to particularly strict requirements regarding transparency, documentation, human oversight, and risk management.

AI proficiency is no longer an optional measure

One aspect of the EU AI Regulation that is often underestimated is what is known as “AI literacy.” Companies that use AI systems must ensure that their employees have sufficient knowledge to use them responsibly. The measures required depend, among other things, on the type of AI used, the employees’ job duties, and their prior knowledge. General, one-size-fits-all training for all employees often fails to meet legal requirements. Instead, training should be tailored to specific areas of work.

For human resources departments, this means, for example, that employees should not only understand how the AI being used works. It is equally important to understand potential sources of error, risks of discrimination, data protection requirements, and the limitations of automated decision-making.

Data protection remains a key issue

Human resources departments regularly process particularly sensitive personal data. Job applications, performance evaluations, and health data are subject to strict data protection requirements. When using AI systems, companies must ensure that the processing of this data is based on a valid legal basis and complies with the requirements of the General Data Protection Regulation (GDPR).

In addition, employees and job applicants should be able to understand the extent to which AI is used in personnel decisions. Transparency builds trust and reduces the risk of legal disputes.

Human decisions remain indispensable

Even though AI simplifies many processes, it should not replace human resources managers. Decisions regarding hiring, promotions, or terminations, in particular, have a significant impact on the individuals involved and should therefore not be left entirely to AI.

Companies should establish internal processes to ensure that AI results are reviewed and scrutinized. The so-called dual-review principle or mandatory approval processes can help prevent erroneous decisions and reduce legal risks.

Here’s How Companies Can Prepare

Companies should plan the use of AI in human resources early on and define clear responsibilities. This includes, in particular:

the identification of all AI applications in use,

internal guidelines for the permissible use of AI,

regular training sessions on AI literacy,

Data protection and compliance audits,

documented control and approval processes, as well as

a continuous review of the systems in use to identify potential risks of discrimination.

By using artificial intelligence responsibly, companies can reap the benefits of the technology while significantly reducing their legal risks.

Using AI Successfully and in Compliance with the Law

Artificial intelligence will bring about lasting changes in human resources. When used correctly, it can reduce the workload on HR departments and make processes more efficient. At the same time, the EU AI Regulation shows that lawmakers are increasingly regulating the responsible use of AI. Companies should therefore not wait to react to new legal requirements, but rather establish clear structures, training programs, and control mechanisms today. This is how innovation and legal certainty can be successfully combined.